Arizona Electricity Price Trends

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Historical rates by sector, 2016–2025

2025 Residential

15.32¢/kWh

-11.4% vs US avg

Arizona residential electricity costs 15.32¢/kWh in 2025

According to the U.S. Energy Information Administration retail-sales series (2025 annual frequency), residential electricity in Arizona costs 15.32¢/kWh, 11.4% below the national average. Since 2016, the rate has changed +26.1%.

Where Arizona sits: according to EIA's annual retail-sales series, its residential rate changed +26.1% between 2016 and 2025, the 37th steepest of 51 jurisdictions (the 50 states and the District of Columbia), a steeper move than 28% of the other 50. Ranked on the same 2016 to 2025 window for every state; see the methodology.

Reading the Arizona Price Trend

According to the U.S. Energy Information Administration's retail-sales series, RateWatt currently holds 2,040 annual state-sector records spanning 2016 through 2025. These are statewide annual averages, not individual utility quotes. See the methodology for source scope and refresh cadence.

Arizona residential electricity moved from 12.15¢/kWh in 2016 to 15.32¢/kWh in 2025, a cumulative change of +26.1% over 10 reporting years. The more recent five-year window changed +24.9% since 2020; comparing the two windows describes whether the pace changed, but does not establish why. Against the national residential benchmark of 17.30¢/kWh, Arizona now sits 11.4% below the U.S. average for 2025.

Commercial customers in Arizona paid 12.47¢/kWh in 2025, while industrial customers paid 8.10¢/kWh. Sector differences can reflect customer mix, consumption volume, tariff design, and cost allocation; this statewide series does not identify which factor drives a state's gap. Here the residential-to-industrial multiplier is about 1.9x, one descriptive benchmark for comparison with peer states.

EIA reports 8 generation sources for Arizona; ranked by share of generation they run natural gas, nuclear, solar, coal, hydro. Of the 11 sources EIA reports somewhere in the country, Arizona records no generation from biomass, geothermal or other. That is an absence in the published series, not a statement that no such capacity exists. This price series and that generation series are published separately and are not joined here, so nothing on this page attributes a price movement to a fuel mix. Adjacent entries in the alphabetical state browser are Alaska and Arkansas; their pages carry the same series on the same basis. EIA publishes the annual series once per year and revises prior years without renumbering them, so a figure here can change when a later release restates it.

The annual average is close to what most months look like

Arizona is one of 20 states, of the 51 with a full monthly record, whose residential rate moves within a narrow band across the year. The monthly series runs from about 13.80¢/kWh in January to about 15.15¢/kWh in May, a spread of 9.2% around the monthly mean. Where that spread is this small, the annual figures in the table above describe an ordinary month here reasonably well, which is not true of every state.

Within-year profile computed from 36 monthly observations across 3 complete calendar years in EIA's residential series (monthly data begins 2023-01). Partial calendar years are excluded so a newer partial tail cannot bias January–May against later months. Peak and trough are the highest and lowest month averages across that record, not a forecast; the spread is quoted against this state's own monthly mean.

How often the rate has actually fallen

Arizona's rate has fallen in 2 of the 9 year-on-year steps on record, the most common pattern among states. The steepest of those falls came in 2019, at 0.34¢.

A clear acceleration, close to the national middle

Arizona's long-run pace is about 2.6% a year; the last five years ran at about 4.5%. The 1.9% difference sits in the upper half of states but well short of the extremes, which is the ordinary shape of the post-2020 rate cycle rather than anything specific to this state.

Both figures are compound annual rates over EIA's published residential series, so the five-year and full-record windows are directly comparable; the national comparison ranks all 51 states and DC on the same measure. Annual state-level averages, not individual bills.

Trajectory peers

Which states followed a similar residential price path?

Each state begins at an index of 100 in 2016; the comparison then measures how closely its annual path follows Arizona through 2025. This compares the shape of the EIA series, not the price level, and does not claim that two states share the same market or causes.

Closest path shapes

Nearest matches after each state starts at an index of 100

  1. Minnesota +24.9% since 2016
  2. North Carolina +27.1% since 2016
  3. Wisconsin +29.1% since 2016
  4. Missouri +20.3% since 2016
  5. Tennessee +26.6% since 2016
  6. Montana +18.6% since 2016
  7. Idaho +18.8% since 2016
  8. Washington +38.3% since 2016

Other steeper paths

Nearest unused states with a larger 2016–2025 rise

  1. Colorado +31.3% since 2016
  2. Ohio +36.0% since 2016
  3. Georgia +28.1% since 2016
  4. Oklahoma +28.6% since 2016
  5. Vermont +32.0% since 2016
  6. Alabama +34.3% since 2016

Other gentler paths

Nearest unused states with a smaller 2016–2025 rise

  1. New Mexico +25.4% since 2016
  2. South Carolina +18.3% since 2016
  3. North Dakota +16.2% since 2016
  4. Iowa +14.9% since 2016
  5. South Dakota +16.7% since 2016
  6. Wyoming +20.2% since 2016

Calculated from 51 jurisdictions covering the complete 2016–2025 annual window. Directional lists exclude states already shown as the closest matches, so every name appears once.

Residential
Commercial
Industrial
US Average (Residential)
6.1¢ 8.9¢ 11.7¢ 14.5¢ 17.3¢ 201620182020202220242025 Arizona residential, 2025: 15.32¢ per kWh Arizona residential, 2024: 14.91¢ per kWh Arizona residential, 2023: 14.02¢ per kWh Arizona residential, 2022: 13.02¢ per kWh Arizona residential, 2021: 12.54¢ per kWh Arizona residential, 2020: 12.27¢ per kWh Arizona residential, 2019: 12.43¢ per kWh Arizona residential, 2018: 12.77¢ per kWh Arizona residential, 2017: 12.44¢ per kWh Arizona residential, 2016: 12.15¢ per kWh Arizona commercial, 2025: 12.47¢ per kWh Arizona commercial, 2024: 12.23¢ per kWh Arizona commercial, 2023: 11.79¢ per kWh Arizona commercial, 2022: 10.80¢ per kWh Arizona commercial, 2021: 10.33¢ per kWh Arizona commercial, 2020: 10.11¢ per kWh Arizona commercial, 2019: 10.25¢ per kWh Arizona commercial, 2018: 10.64¢ per kWh Arizona commercial, 2017: 10.50¢ per kWh Arizona commercial, 2016: 10.41¢ per kWh Arizona industrial, 2025: 8.10¢ per kWh Arizona industrial, 2024: 7.90¢ per kWh Arizona industrial, 2023: 8.11¢ per kWh Arizona industrial, 2022: 7.86¢ per kWh Arizona industrial, 2021: 6.79¢ per kWh Arizona industrial, 2020: 6.07¢ per kWh Arizona industrial, 2019: 6.28¢ per kWh Arizona industrial, 2018: 6.55¢ per kWh Arizona industrial, 2017: 6.45¢ per kWh Arizona industrial, 2016: 6.07¢ per kWh US residential average, 2025: 17.30¢ per kWh US residential average, 2024: 16.48¢ per kWh US residential average, 2023: 16.00¢ per kWh US residential average, 2022: 15.04¢ per kWh US residential average, 2021: 13.66¢ per kWh US residential average, 2020: 13.15¢ per kWh US residential average, 2019: 13.01¢ per kWh US residential average, 2018: 12.87¢ per kWh US residential average, 2017: 12.89¢ per kWh US residential average, 2016: 12.55¢ per kWh
Annual average revenue per kilowatt-hour for Arizona by sector and the US residential benchmark. Focus or tap a point for its year and exact value; the full values are also listed in the table below.

2025 Rate

15.32¢/kWh

vs National Avg

-11.4%

5-Year Change

+24.9%

Since 2016

+26.1%

Annual Average Prices

Year Residential US Avg
2025 15.32¢/kWh +2.7% 17.30¢/kWh
2024 14.91¢/kWh +6.3% 16.48¢/kWh
2023 14.02¢/kWh +7.7% 16.00¢/kWh
2022 13.02¢/kWh +3.8% 15.04¢/kWh
2021 12.54¢/kWh +2.2% 13.66¢/kWh
2020 12.27¢/kWh -1.3% 13.15¢/kWh
2019 12.43¢/kWh -2.7% 13.01¢/kWh
2018 12.77¢/kWh +2.7% 12.87¢/kWh
2017 12.44¢/kWh +2.4% 12.89¢/kWh
2016 12.15¢/kWh 12.55¢/kWh

Provider record

Largest bundled residential providers EIA reports for Arizona

EIA-861 table 6 lists the 20 largest reporting entities here for 2024, ordered by residential customer count. A provider's appearance is not evidence that it serves every address or that a household can choose it.

ProviderOwnershipResidential customersEIA average price
Arizona Public Service CoInvestor Owned1,256,12016.45¢/kWh
Salt River ProjectPolitical Subdivision1,053,40713.46¢/kWh
Tucson Electric Power CoInvestor Owned412,74715.63¢/kWh
UNS Electric, IncInvestor Owned95,19116.02¢/kWh
Trico Electric Cooperative IncCooperative52,45014.17¢/kWh
Sulphur Springs Valley E C IncCooperative46,00813.49¢/kWh
Mohave Electric Cooperative, Inc.Cooperative41,00911.20¢/kWh
Tesla Inc.Behind the Meter40,22912.17¢/kWh
Navopache Electric Coop, IncCooperative40,07613.43¢/kWh
Sunrun Inc.Behind the Meter40,06113.72¢/kWh
Electrical Dist No3 Pinal CountyPolitical Subdivision32,00913.93¢/kWh
Navajo Tribal Utility AuthorityState27,01416.63¢/kWh
City of Mesa - (AZ)Municipal15,33116.93¢/kWh
SunPower Capital, LLCBehind the Meter11,45915.96¢/kWh
USBIA-San Carlos ProjectFederal11,43219.49¢/kWh
SunnovaBehind the Meter5,37917.99¢/kWh
Electrical Dist No2 Pinal CountyPolitical Subdivision5,21813.26¢/kWh
Spruce FinanceBehind the Meter3,62010.67¢/kWh
Dixie Escalante R E A, IncCooperative2,7909.60¢/kWh
Gila River Indian Utility Authority (GRICUA)Cooperative2,68214.25¢/kWh

“Average price” is EIA's reported residential revenue divided by sales, not a tariff, plan offer, or bill quote. Source: EIA Electric Sales, Revenue, and Average Price, table 6.

Frequently Asked Questions

Are electricity prices going up in Arizona?
From 2016 to 2025, residential electricity in Arizona changed from 12.15¢/kWh to 15.32¢/kWh (+26.1%). Over the past 5 years, the change was +24.9%.
How does Arizona's electricity price compare to the national average?
Arizona's residential electricity rate of 15.32¢/kWh is 11.4% below the national average of 17.30¢/kWh (2025).
What do businesses pay for electricity in Arizona?
Commercial electricity in Arizona costs 12.47¢/kWh (2025), compared to 15.32¢/kWh for residential customers. These are separate statewide sector averages; this series does not identify why they differ.
Where does this price trend data come from?
All electricity price data is from the U.S. Energy Information Administration (EIA), the official federal statistics agency for energy data. The table, chart, rankings, and long-window changes use annual statewide averages in cents per kilowatt-hour; the within-year profile uses EIA's separate monthly statewide series.

Data from the U.S. Energy Information Administration. Prices in cents per kilowatt-hour (kWh). Annual averages.

Source: U.S. Energy Information Administration, Electricity (Retail Sales of Electricity to Ultimate Customers). See our methodology for details. Retrieved and formatted by RateWatt